Which of the following is not a procedure that typically is used by the auditors in their examination of a client's goods held in the custody of a public warehouse?

Confirmation. Obtaining reports on internal control at the warehouse. Observation. Communicate with the regulatory agency about the legitimacy of the public warehouse.

The auditors plan to use data analytics to audit purchases. Which of the following is least likely to be performed efficiently using data analytics?

Identification of unusually large purchases. Identification of purchases from vendors that are not authorized. Identification of purchases of non-standard items. Identification of purchases of goods from related parties that the auditors had not been informed of and were not aware of the relationship.

Which of the following is not a part of the auditors' responsibility regarding a client's count of its inventory?

Evaluate condition of inventory. Determine which counts they will make and which counts the client will make. Observe compliance with management's instructions for the count. Make some test counts.

An auditor suspects that certain client employees are ordering merchandise for themselves over the Internet without recording the purchase or receipt of the merchandise. When vendors' invoices arrive, one of the employees approves the invoices for payment. After the invoices are paid, the employee destroys the invoices and the related vouchers. In gathering evidence regarding the fraud, the auditor most likely would select items for testing from the file of all:

Cash disbursements. Approved vouchers. Receiving reports. Vendors' invoices.

Which of the following best describes the auditors' response to a client's use of statistical sampling techniques to estimate the inventory?

The auditors should satisfy themselves as to the statistical validity of the technique, and the reasonableness of the allowance for sampling risk and sampling error used. The auditors should qualify their opinion, because the client must perform a complete count of the inventory. The auditors should increase the extent of their test counts to compensate for the use of a statistical technique. The auditors should withdraw from the engagement.

Which of the following best describes the auditors' response to a client's use of statistical sampling techniques to estimate the inventory?

The auditors should satisfy themselves as to the statistical validity of the technique, and the reasonableness of the allowance for sampling risk and sampling error used. The auditors should qualify their opinion, because the client must perform a complete count of the inventory. The auditors should increase the extent of their test counts to compensate for the use of a statistical technique. The auditors should withdraw from the engagement.